United Nations A/CONF.227/L.1

Third International Conference on Financing for Development Addis Ababa, 13-16 July 2015

Distr.: Limited

15 July 2015

Original: English

15-11996 (E) 150715

*1511996*

Agenda item 10

Adoption of the outcome document of the Conference

Draft resolution submitted by the Chair of the Main Committee

Outcome document of the Third International Conference on

Financing for Development: Addis Ababa Action Agenda

The Third International Conference on Financing for Development,

Having met in Addis Ababa from 13 to 16 July 2015,

1. Adopts, as the outcome document of the Conference, the Addis Ababa

Action Agenda of the Third International Conference on Financing for Development

(Addis Ababa Action Agenda), annexed to the present resolution;

2. Recommends that the General Assembly endorse, at its sixty-ninth

session, the Addis Ababa Action Agenda as adopted by the Conference.

A/CONF.227/L.1

15-11996 2/39

Annex

Addis Ababa Action Agenda of the Third International Conference on Financing for Development (Addis Ababa Action Agenda)

I. A global framework for financing development post-2015

1. We, the Heads of State and Government and High Representatives, gathered in

Addis Ababa from 13 to 16 July 2015, affirm our strong political commitment to

address the challenge of financing and creating an enabling environment at all levels

for sustainable development in the spirit of global partnership and solidarity. We

reaffirm and build on the 2002 Monterrey Consensus and the 2008 Doha

Declaration. Our goal is to end poverty and hunger, and to achieve sustainable

development in its three dimensions through promoting inclusive economic growth,

protecting the environment, and promoting social inclusion. We commit to

respecting all human rights, including the right to development. We will ensure

gender equality and women’s and girls’ empowerment. We will promote peaceful

and inclusive societies and advance fully towards an equitable global economic

system in which no country or person is left behind, enabling decent work and

productive livelihoods for all, while preserving the planet for our children and

future generations.

2. In September 2015, the United Nations will host a summit to adopt an

ambitious and transformative post-2015 development agenda, including sustainable

development goals. This agenda must be underpinned by equally ambitious and

credible means of implementation. We have come together to establish a holistic and

forward-looking framework and to commit to concrete actions to del iver on the

promise of that agenda. Our task is threefold: to follow-up on commitments and

assess the progress made in the implementation of the Monterrey Consensus and the

Doha Declaration; to further strengthen the framework to finance sustainable

development and the means of implementation for the universal post -2015

development agenda; and to reinvigorate and strengthen the financing for

development follow-up process to ensure that the actions to which we commit are

implemented and reviewed in an appropriate, inclusive, timely and transparent

manner.

3. We recognize that since the adoption of the Monterrey Consensus the world

has made significant overall progress. Globally, economic activity and financing

flows have increased substantially. We have made great progress in mobilizing

financial and technical resources for development from an increased number of

actors. Advances in science, technology and innovation have enhanced the potential

to achieve our development goals. Many countries, including developing countries,

have implemented policy frameworks that have contributed to increased

mobilization of domestic resources and higher levels of economic growth and social

progress. Developing countries’ share in world trade has increased and, while debt

burdens remain, they have been reduced in many poor countries. These advances

have contributed to a substantial reduction in the number of people living in

extreme poverty and to notable progress towards the achievement of the Millennium

Development Goals.

A/CONF.227/L.1

3/39 15-11996

4. Despite these gains, many countries, particularly developing countries, still

face considerable challenges, and some have fallen further behind. Inequalities

within many countries have increased dramatically. Women, representing half of the

world’s population, as well as indigenous peoples and the vulnerable, continue to be

excluded from participating fully in the economy. While the Monterrey agenda has

not yet been fully implemented, new challenges have arisen, and enormous unmet

needs remain for the achievement of sustainable development. The 2008 world

financial and economic crisis exposed risks and vulnerabilities in the international

financial and economic system. Global growth rates are now below pre -crisis levels.

Shocks from financial and economic crises, conflict, natural disasters and disease

outbreaks spread rapidly in our highly interconnected world. Environmental

degradation, climate change, and other environmental risks threaten to undermine

past successes and future prospects. We need to ensure that our development efforts

enhance resilience in the face of these threats.

5. Solutions can be found, including through strengthening public policies,

regulatory frameworks and finance at all levels, unlocking the transformative

potential of people and the private sector, and incentivizing changes in financing as

well as consumption and production patterns to support sustainable development.

We recognize that appropriate incentives, strengthening national and international

policy environments and regulatory frameworks and their coherence, harnessing the

potential of science, technology and innovation, closing technology gaps and

scaling up capacity-building at all levels are essential for the shift towards

sustainable development and poverty eradication. We reaffirm the importance of

freedom, human rights, and national sovereignty, good governance, rule of law,

peace and security, combating corruption at all levels and in all its forms, and

effective, accountable and inclusive democratic institutions at the subnational,

national and international levels as central to enabling the effective, efficient and

transparent mobilization and use of resources. We also reaffirm all the principles of

the Rio Declaration on Environment and Development.

6. We reaffirm that achieving gender equality, empowering all women and girls,

and the full realization of their human rights are essential to achieving sustained,

inclusive and equitable economic growth and sustainable development. We reiterate

the need for gender mainstreaming, including targeted actions and investments in

the formulation and implementation of all financial, economic, environmental and

social policies. We recommit to adopting and strengthening sound policies and

enforceable legislation and transformative actions for the promotion of gender

equality and women’s and girls’ empowerment at all levels, to ensure women’s

equal rights, access and opportunities for participation and leadership in the

economy and to eliminate gender-based violence and discrimination in all its forms.

7. We recognize that investing in children and youth is critical to achieving

inclusive, equitable and sustainable development for present and future generations,

and we recognize the need to support countries that face particular chal lenges to

make the requisite investments in this area. We reaffirm the vital importance of

promoting and protecting the rights of all children, and ensuring that no child is left

behind.

8. We recognize the importance of addressing the diverse needs and challenges

faced by countries in special situations, in particular African countries, least

developed countries, landlocked developing countries and small island developing

A/CONF.227/L.1

15-11996 4/39

States, as well as the specific challenges facing middle -income countries. We

reaffirm that least developed countries, as the most vulnerable group of countries,

need enhanced global support to overcome the structural challenges they face for

the achievement of the post-2015 development agenda and the sustainable

development goals. We reaffirm the need to address the special challenges and

needs of landlocked developing countries in structurally transforming their

economies, harnessing benefits from international trade, and developing efficient

transport and transit systems. We further reaffirm that small island developing

States remain a special case for sustainable development in view of their small size,

remoteness, narrow resource and export base, and exposure to global environmental

challenges. We also reaffirm the need to achieve a positive socioeconomic

transformation in Africa, and the need to address the diverse and specific

development needs of middle-income countries, including combating poverty in all

of its forms. In this regard, we support the implementation of relevant strateg ies and

programmes of action, including the Istanbul Declaration and Programme of Action,

the SIDS Accelerated Modalities of Action (SAMOA) Pathway and the Vienna

Programme of Action for Landlocked Developing Countries for the Decade 2014 -

2024, and reaffirm the importance of supporting the new development framework,

“the African Union’s Agenda 2063”, as well as its 10-year Plan of Action, as a

strategic framework for ensuring a positive socioeconomic transformation in Africa

within the next 50 years and its continental programme embedded in the resolutions

of the General Assembly on the New Partnership for Africa’s Development

(NEPAD). Countries in conflict and post-conflict situations also need special

attention. We recognize the development challenge posed by conflict, which not

only impedes but can reverse decades of development gains. We recognize the

peacebuilding financing gap and the importance of the Peacebuilding Fund. We take

note of the principles set out in the New Deal by the Group of Seven Plus, countries

that are, or have been, affected by conflict.

9. Cohesive nationally owned sustainable development strategies, supported by

integrated national financing frameworks, will be at the heart of our efforts. We

reiterate that each country has primary responsibility for its own economic and

social development and that the role of national policies and development strategies

cannot be overemphasized. We will respect each country’s policy space and

leadership to implement policies for poverty eradication and sustainable

development, while remaining consistent with relevant international rules and

commitments. At the same time, national development efforts need to be supported

by an enabling international economic environment, including coherent and

mutually supporting world trade, monetary and financial systems, and strengthened

and enhanced global economic governance. Processes to develop and facilitate the

availability of appropriate knowledge and technologies globally, as well as capacity -

building, are also critical. We commit to pursuing policy coherence and an enabling

environment for sustainable development at all levels and by all actors, and to

reinvigorating the global partnership for sustainable development.

10. The enhanced and revitalized global partnership for sustainable development,

led by Governments, will be a vehicle for strengthening international cooperation

for implementation of the post-2015 development agenda. Multi-stakeholder

partnerships and the resources, knowledge and ingenuity of the private sector, civil

society, the scientific community, academia, philanthropy and foundations,

parliaments, local authorities, volunteers and other stakeholders will be important to

A/CONF.227/L.1

5/39 15-11996

mobilize and share knowledge, expertise, technology and financial r esources,

complement the efforts of Governments, and support the achievement of the

sustainable development goals, in particular in developing countries. This global

partnership should reflect the fact that the post-2015 development agenda, including

the sustainable development goals, is global in nature and universally applicable to

all countries while taking into account different national realities, capacities, needs

and levels of development and respecting national policies and priorities. We will

work with all partners to ensure a sustainable, equitable, inclusive, peaceful and

prosperous future for all. We will all be held accountable by future generations for

the success and delivery of commitments we make today.

11. Achieving an ambitious post-2015 development agenda, including all the

sustainable development goals, will require an equally ambitious, comprehensive,

holistic and transformative approach with respect to the means of implementation,

combining different means of implementation and integrat ing the economic, social

and environmental dimensions of sustainable development. This should be

underpinned by effective, accountable and inclusive institutions, sound policies and

good governance at all levels. We will identify actions and address critic al gaps

relevant to the post-2015 development agenda, including the sustainable

development goals, with an aim to harness their considerable synergies, so that

implementation of one will contribute to the progress of others. We have therefore

identified a range of cross-cutting areas that build on these synergies.

12. Delivering social protection and essential public services for all. To end

poverty in all its forms everywhere and finish the unfinished business of the

Millennium Development Goals, we commit to a new social compact. In this effort,

we will provide fiscally sustainable and nationally appropriate social protection

systems and measures for all, including floors, with a focus on those furthest below

the poverty line and the vulnerable, persons with disabilities, indigenous persons,

children, youth and older persons. We also encourage countries to consider setting

nationally appropriate spending targets for quality investments in essential public

services for all, including health, education, energy, water and sanitation, consistent

with national sustainable development strategies. We will make every effort to meet

the needs of all communities through delivering high -quality services that make

effective use of resources. We commit to strong international support for these

efforts, and will explore coherent funding modalities to mobilize additional

resources, building on country-led experiences.

13. Scaling up efforts to end hunger and malnutrition. It is unacceptable that

close to 800 million people are chronically undernourished and do not have access

to sufficient, safe and nutritious food. With the majority of the poor living in rural

areas, we emphasize the need to revitalize the agricultural sector, promote rural

development, and ensure food security, notably in developing countries, in a

sustainable manner, which will lead to rich payoffs across the sustainable

development goals. We will support sustainable agriculture, including forestry,

fisheries and pastoralism. We will also take action to fight malnutrition and hunger

among the urban poor. Recognizing the enormous investment needs in these areas,

we encourage increased public and private investments. In this regard, we recognize

the Committee on World Food Security’s voluntary Principles for Responsible

Investment in Agriculture and Food Systems and the Voluntary Guidelines on the

Responsible Governance of Tenure of Land, Fisheries and Forests. We recognize the

efforts of the International Fund for Agricultural Development in mobilizing

A/CONF.227/L.1

15-11996 6/39

investment to enable rural people living in poverty to improve their food security

and nutrition, raise their incomes, and strengthen their resilience. We value the work

of the Food and Agriculture Organization of the United Nations (FAO) the World

Food Programme, and the World Bank and other multilateral development banks.

We also recognize the complementary role of social safety nets in ensuring food

security and nutrition. In this regard, we welcome the Rome Declaration on

Nutrition and the Framework for Action, which can provide policy options and

strategies aimed at ensuring food security and nutrition for all. We also commit to

increasing public investment, which plays a strategic role in financing researc h,

infrastructure and pro-poor initiatives. We will strengthen our efforts to enhance

food security and nutrition and focus our efforts on smallholders and women

farmers, as well as on agricultural cooperatives and farmers’ networks. We call on

relevant agencies to further coordinate and collaborate in this regard, in accordance

with their respective mandates. These efforts must be supported by improving

access to markets, enabling domestic and international environments, and

strengthened collaboration across the many initiatives in this area, including

regional initiatives, such as the Comprehensive Africa Agriculture Development

Programme. We will also work to significantly reduce post-harvest food loss and

waste.

14. Establishing a new forum to bridge the infrastructure gap. Investing in

sustainable and resilient infrastructure, including transport, energy, water and

sanitation for all, is a pre-requisite for achieving many of our goals. To bridge the

global infrastructure gap, including the $1 trillion to $1.5 trillion annual gap in

developing countries, we will facilitate development of sustainable, accessible and

resilient quality infrastructure in developing countries through enhanced financial

and technical support. We welcome the launch of new infrastructure initiatives

aimed at bridging these gaps, including the Asian Infrastructure Investment Bank,

the Global Infrastructure Hub, the New Development Bank, the Asia Pacific Project

Preparation Facility, the World Bank Group’s Global Infrastructure Facil ity and the

Africa50 Infrastructure Fund, as well as the increase in the capital of the

Inter-American Investment Corporation. As a key pillar to meet the sustainable

development goals, we call for the establishment of a global infrastructure forum

building on existing multilateral collaboration mechanisms, led by the multilateral

development banks. This forum will meet periodically to improve alignment and

coordination among established and new infrastructure initiatives, multilateral and

national development banks, United Nations agencies, and national institutions,

development partners and the private sector. It will encourage a greater range of

voices to be heard, particularly from developing countries, to identify and address

infrastructure and capacity gaps in particular in least developed countries,

landlocked developing countries, small island developing States and African

countries. It will highlight opportunities for investment and cooperation, and work

to ensure that investments are environmentally, socially and economically

sustainable.

15. Promoting inclusive and sustainable industrialization. We stress the critical

importance of industrial development for developing countries, as a critical source

of economic growth, economic diversification, and value addition. We will invest in

promoting inclusive and sustainable industrial development to effectively address

major challenges such as growth and jobs, resources and energy efficiency,

pollution and climate change, knowledge-sharing, innovation and social inclusion.

A/CONF.227/L.1

7/39 15-11996

In this regard, we welcome relevant cooperation within the United Nations system,

including the United Nations Industrial Development Organization (UNIDO), to

advance the linkages between infrastructure development, inclusive and sustaina ble

industrialization and innovation.

16. Generating full and productive employment and decent work for all and

promoting micro, small and medium-sized enterprises. To enable all people to

benefit from growth, we will include full and productive employment and decent

work for all as a central objective in our national development strategies. We will

encourage the full and equal participation of women and men, including persons

with disabilities, in the formal labour market. We note that micro, small and

medium-sized enterprises, which create the vast majority of jobs in many countries,

often lack access to finance. Working with private actors and development banks,

we commit to promoting appropriate, affordable and stable access to credit to micro,

small and medium-sized enterprises, as well as adequate skills development training

for all, particularly for youth and entrepreneurs. We will promote national youth

strategies as a key instrument for meeting the needs and aspirations of young

people. We also commit to developing and operationalizing, by 2020, a global

strategy for youth employment and implementing the International Labour

Organization (ILO) Global Jobs Pact.

17. Protecting our ecosystems for all. All of our actions need to be underpinned

by our strong commitment to protect and preserve our planet and natural resources,

our biodiversity and our climate. We commit to coherent policy, financing, trade and

technology frameworks to protect, manage and restore our ecosystems, including

marine and terrestrial ecosystems, and to promote their sustainable use, build

resilience, reduce pollution and combat climate change, desertification and land

degradation. We recognize the importance of avoiding harmful activities.

Governments, businesses and households will all need to change behaviours, with a

view to ensuring sustainable consumption and production patterns. We will promote

corporate sustainability, including reporting on environmental, social and

governance impacts, to help to ensure transparency and accountability. Public and

private investments in innovations and clean technologies will be needed, while

keeping in mind that new technologies will not substitute for efforts to reduce waste

or efficiently use natural resources.

18. Promoting peaceful and inclusive societies. We underline the need to

promote peaceful and inclusive societies for achieving sustainable development, and

to build effective, accountable and inclusive institutions at all levels. Good

governance, rule of law, human rights, fundamental freedoms, equal access to fair

justice systems, and measures to combat corruption and curb illicit financial flows

will be integral to our efforts.

19. The post-2015 development agenda, including the sustainable development

goals, can be met within the framework of a revitalized global partnership for

sustainable development, supported by the concrete policies and actions as outlined

in the present Action Agenda.

A/CONF.227/L.1

15-11996 8/39

II. Action areas

A. Domestic public resources

20. For all countries, public policies and the mobilization and effective use of

domestic resources, underscored by the principle of national ownership, are central

to our common pursuit of sustainable development, including achieving the

sustainable development goals. Building on the considerable achievements in many

countries since Monterrey, we remain committed to further strengthening the

mobilization and effective use of domestic resources. We recognize that domestic

resources are first and foremost generated by economic growth, supported by an

enabling environment at all levels. Sound social, environmental and economic

policies, including countercyclical fiscal policies, adequate fiscal space, good

governance at all levels, and democratic and transparent institutions responsive to

the needs of the people are necessary to achieve our goals. We will strengthen our

domestic enabling environments, including the rule of law, and combat corruption at

all levels and in all its forms. Civil society, independent media, and other non -State

actors also play important roles.

21. Evidence shows that gender equality, women’s empowerment and women’s

full and equal participation and leadership in the economy are vital to achieve

sustainable development and significantly enhance economic growth and

productivity. We commit to promoting social inclusion in our domestic policies. We

will promote and enforce non-discriminatory laws, social infrastructure and policies

for sustainable development, as well as enable women’s full and equal participation

in the economy, and their equal access to decision-making processes and leadership.

22. We recognize that significant additional domestic public resources,

supplemented by international assistance as appropriate, will be critical to realizing

sustainable development and achieving the sustainable development goals. We

commit to enhancing revenue administration through modernized, progressive tax

systems, improved tax policy and more efficient tax collection. We will work to

improve the fairness, transparency, efficiency and effectiveness of our tax systems,

including by broadening the tax base and continuing efforts to integrate the informal

sector into the formal economy in line with country circumstances. In this regard,

we will strengthen international cooperation to support efforts to build capacity in

developing countries, including through enhanced official development assistance

(ODA). We welcome efforts by countries to set nationally defined domestic targets

and timelines for enhancing domestic revenue as part of their national sustainable

development strategies, and will support developing countries in need in reaching

these targets.

23. We will redouble efforts to substantially reduce illicit financial flows by 2030,

with a view to eventually eliminating them, including by combating tax evasion and

corruption through strengthened national regulation and increased international

cooperation. We will also reduce opportunities for tax avoidance, and consider

inserting anti-abuse clauses in all tax treaties. We will enhance disclosure practices

and transparency in both source and destination countries, including by seeking to

ensure transparency in all financial transactions between Governments and

companies to relevant tax authorities. We will make sure that all companies ,

including multinationals, pay taxes to the Governments of countries where

A/CONF.227/L.1

9/39 15-11996

economic activity occurs and value is created, in accordance with national and

international laws and policies.

24. We note the report of the High-level Panel on Illicit Financial Flows from

Africa. We invite other regions to carry out similar exercises. To help combat illicit

flows, we invite the International Monetary Fund (IMF), the World Bank and the

United Nations to assist both source and destination countries. We also invite

appropriate international institutions and regional organizations to publish estimates

of the volume and composition of illicit financial flows. We will identify, assess and

act on money-laundering risks, including through effective implementation of the

Financial Action Task Force standards on anti-money-laundering/counter-terrorism

financing. At the same time, we will encourage information -sharing among financial

institutions to mitigate the potential impact of the anti-money-laundering and

combating the financing of terrorism standard on reducing access to financial

services.

25. We urge all countries that have not yet done so to ratify and accede to the

United Nations Convention against Corruption and encourage parties to review its

implementation. We commit to making the Convention an effective instrument to

deter, detect, prevent and counter corruption and bribery, prosecute those involved

in corrupt activities, and recover and return stolen assets to their country of origin.

We encourage the international community to develop good practices on asset

return. We support the Stolen Asset Recovery Initiative of the United Nations and

the World Bank, and other international initiatives that support the recovery of

stolen assets. We further urge that regional conventions against corruption be

updated and ratified. We will strive to eliminate safe havens that create incentives

for transfer abroad of stolen assets and illicit financial flows. We will work to

strengthen regulatory frameworks at all levels to further increase transparency and

accountability of financial institutions and the corporate sector, as well as public

administrations. We will strengthen international cooperation and national

institutions to combat money-laundering and financing of terrorism.

26. Countries relying significantly on natural resource exports face particular

challenges. We encourage investment in value addition and processing of natural

resources and productive diversification, and commit to addressing excessive tax

incentives related to these investments, particularly in extractive industries. We

reaffirm that every State has and shall freely exercise full permanent sovereignty

over all its wealth, natural resources and economic activity. We underline the

importance of corporate transparency and accountability of all companies, notably

in the extractive industries. We encourage countries to implement measures to

ensure transparency, and take note of voluntary initiatives such as the Extractive

Industries Transparency Initiative. We will continue to share best practices and

promote peer learning and capacity-building for contract negotiations for fair and

transparent concession, revenue and royalty agreements, and for monitoring the

implementation of contracts.

27. We commit to scaling up international tax cooperation. We encourage

countries, in accordance with their national capacities and circumstances, to work

together to strengthen transparency and adopt appropriate policies, including

multinational enterprises reporting country-by-country to tax authorities where they

operate; access to beneficial ownership information for competent authorities; and

progressively advancing towards automatic exchange of tax information among tax

A/CONF.227/L.1

15-11996 10/39

authorities as appropriate, with assistance to developing countries, especially the

least developed, as needed. Tax incentives can be an appropriate policy tool.

However, to end harmful tax practices, countries can engage in voluntary

discussions on tax incentives in regional and international forums.

28. We stress that efforts in international tax cooperation should be universal in

approach and scope and should fully take into account the different needs and

capacities of all countries, in particular least developed countries, landlocked

developing countries, small island developing States and African countries. We

welcome the participation of developing countries or their regional networks in this

work, and call for more inclusiveness to ensure that these efforts benefit all

countries. We welcome ongoing efforts, including the work of the Global Forum on

Transparency and Exchange of Information for Tax Purposes, and take into account

the work of the Organization for Economic Cooperation and Development (OECD)

for the Group of 20 on base erosion and profit shifting. We support strengthening of

regional networks of tax administrators. We take note of ongoing efforts, such as

those of IMF, including on capacity-building, and the OECD “Tax Inspectors

without Borders” initiative. We recognize the need for technica l assistance through

multilateral, regional, bilateral and South-South cooperation, based on different

needs of countries.

29. We emphasize the importance of inclusive cooperation and dialogue among

national tax authorities on international tax matters. In this regard, we welcome the

work of the Committee of Experts on International Cooperation in Tax Matters,

including its subcommittees. We have decided that we will work to further enhance

its resources in order to strengthen its effectiveness and operational capacity. To that

end, we will increase the frequency of its meetings to two sessions per year, with a

duration of four working days each. We will increase the engagement of the

Committee with the Economic and Social Council through the Special Meeting on

International Cooperation on Tax Matters, with a view to enhancing

intergovernmental consideration of tax issues. Members of the Committee will

continue to report directly to the Economic and Social Council. We continue to urge

Member States to support the Committee and its subsidiary bodies through the

voluntary trust fund, to enable the Committee to fulfil its mandate, including

supporting the increased participation of developing country experts at

subcommittee meetings. The Committee members shall be nominated by

Governments and acting in their expert capacity, who are to be drawn from the

fields of tax policy and tax administration and who are to be selected to reflect an

adequate equitable geographical distribution, representing different tax systems. The

members shall be appointed by the Secretary-General, in consultation with Member

States.

30. We will strengthen national control mechanisms, such as supreme audit

institutions, along with other independent oversight institutions, as appropriate. We

will increase transparency and equal participation in the budgeting process, and

promote gender responsive budgeting and tracking. We will establish transparent

public procurement frameworks as a strategic tool to reinforce sustainable

development. We take note of the work of the Open Government Partnership, which

promotes the transparency, accountability and responsiveness of Governments to

their citizens, with the goal of improving the quality of governance and government

services.

A/CONF.227/L.1

11/39 15-11996

31. We reaffirm the commitment to rationalize inefficient fossil-fuel subsidies that

encourage wasteful consumption by removing market distortions, in accordance

with national circumstances, including by restructuring taxation and phasing out

those harmful subsidies, where they exist, to reflect their environmental impacts,

taking fully into account the specific needs and conditions of developing countries

and minimizing the possible adverse impacts on their development in a manner that

protects the poor and the affected communities.

32. We note the enormous burden that non-communicable diseases place on

developed and developing countries. These costs are particularly challenging for

small island developing States. We recognize, in particular, that, as part of a

comprehensive strategy of prevention and control, price and tax measures on

tobacco can be an effective and important means to reduce tobacco consumption

and health-care costs, and represent a revenue stream for financing for development

in many countries.

33. We note the role that well-functioning national and regional development

banks can play in financing sustainable development, particularly in credit market

segments in which commercial banks are not fully engaged and where large

financing gaps exist, based on sound lending frameworks and compliance with

appropriate social and environmental safeguards. This includes areas such as

sustainable infrastructure, energy, agriculture, industrialization, science, technology

and innovation, as well as financial inclusion and financing of micro, small and

medium-sized enterprises. We acknowledge that national and regional development

banks also play a valuable countercyclical role, especially during financial crises

when private sector entities become highly risk-averse. We call on national and

regional development banks to expand their contributions in these areas, and further

urge relevant international public and private actors to support such banks in

developing countries.

34. We further acknowledge that expenditures and investments in sustainable

development are being devolved to the subnational level, which often lacks

adequate technical and technological capacity, financing and support. We therefore

commit to scaling up international cooperation to strengthen capacities of

municipalities and other local authorities. We will support cities and local

authorities of developing countries, particularly in least developed countries and

small island developing States, in implementing resilient and environmentally sound

infrastructure, including energy, transport, water and sanitation, and sustainable and

resilient buildings using local materials. We will strive to support local governments

in their efforts to mobilize revenues as appropriate. We will enhance inclusive and

sustainable urbanization and strengthen economic, social and environmental links

between urban, peri-urban and rural areas by strengthening national and regional

development planning, within the context of national sustainable development

strategies. We will work to strengthen debt management, and where appropriate to

establish or strengthen municipal bond markets, to help subnational authorities to

finance necessary investments. We will also promote lending from financial

institutions and development banks, along with risk mitigation mechanisms, such as

the Multilateral Investment Guarantee Agency, while managing currency risk. In

these efforts, we will encourage the participation of local communities in decisions

affecting their communities, such as in improving drinking water and sanitation

management. By 2020, we will increase the number of cities and human settlements

adopting and implementing integrated policies and plans towards inclusion,

A/CONF.227/L.1

15-11996 12/39

resource efficiency, mitigation and adaptation to climate change, and resil ience to

disasters. We will develop and implement holistic disaster risk management at all

levels in line with the Sendai Framework. In this regard, we will support national

and local capacity for prevention, adaptation and mitigation of external shocks an d

risk management.

B. Domestic and international private business and finance

35. Private business activity, investment and innovation are major drivers of

productivity, inclusive economic growth and job creation. We acknowledge the

diversity of the private sector, ranging from micro-enterprises to cooperatives to

multinationals. We call on all businesses to apply their creativity and innovation to

solving sustainable development challenges. We invite them to engage as partners in

the development process, to invest in areas critical to sustainable development, and

to shift to more sustainable consumption and production patterns. We welcome the

significant growth in domestic private activity and international investment since

Monterrey. Private international capital flows, particularly foreign direct

investment, along with a stable international financial system, are vital complements

to national development efforts. Nonetheless, we note that there are investment gaps

in key sectors for sustainable development. Foreign direct investment is

concentrated in a few sectors in many developing countries and often bypasses

countries most in need, and international capital flows are often short -term oriented.

36. We will develop policies and, where appropriate, strengthen regulatory

frameworks to better align private sector incentives with public goals, including

incentivizing the private sector to adopt sustainable practices, and foster long -term

quality investment. Public policy is needed to create the enabling environment at all

levels and a regulatory framework necessary to encourage entrepreneurship and a

vibrant domestic business sector. Monterrey tasked us to build transparent, stable

and predictable investment climates, with proper contract enforcement and respect

for property rights, embedded in sound macroeconomic policies and institutions.

Many countries have made great strides in this area. We will continue to promote

and create enabling domestic and international conditions for inclusive and

sustainable private sector investment, with transparent and stable rules and

standards and free and fair competition, conducive to achieving national

development policies.

37. We will foster a dynamic and well-functioning business sector, while

protecting labour rights and environmental and health standards in accordance with

relevant international standards and agreements, such as the Guiding Principles on

Business and Human Rights and the labour standards of ILO, the Convention on the

Rights of the Child and key multilateral environmental agreements, for parties to

those agreements. We welcome the growing number of businesses that embrace a

core business model that takes account of the environmental, social and governance

impacts of their activities, and urge all others to do so. We encourage impact

investing, which combines a return on investment with non-financial impacts. We

will promote sustainable corporate practices, including integrating environmental,

social and governance factors into company reporting as appropriate, with countries

deciding on the appropriate balance of voluntary and mandatory rules. We

encourage businesses to adopt principles for responsible business and investing, and

we support the work of the Global Compact in this regard. We will work towards

harmonizing the various initiatives on sustainable business and financing,

A/CONF.227/L.1

13/39 15-11996

identifying gaps, including in relation to gender equality, and strengthening the

mechanisms and incentives for compliance.

38. We acknowledge the importance of robust risk-based regulatory frameworks

for all financial intermediation, from microfinance to international banking. We

acknowledge that some risk-mitigating measures could potentially have unintended

consequences, such as making it more difficult for micro, small and med ium-sized

enterprises to access financial services. We will work to ensure that our policy and

regulatory environment supports financial market stability and promotes financial

inclusion in a balanced manner, and with appropriate consumer protection. We wi ll

endeavour to design policies, including capital market regulations where

appropriate, that promote incentives along the investment chain that are aligned

with long-term performance and sustainability indicators, and that reduce excess

volatility.

39. Many people, especially women, still lack access to financial services, as well

as financial literacy, which is a key for social inclusion. We will work towards full

and equal access to formal financial services for all. We will adopt or review our

financial inclusion strategies, in consultation with relevant stakeholders, and will

consider including financial inclusion as a policy objective in financial regulation,

in accordance with national priorities and legislation. We will encourage our

commercial banking systems to serve all, including those who currently face

barriers to access financial services and information. We will also support

microfinance institutions, development banks, agricultural banks, mobile network

operators, agent networks, cooperatives, postal banks and savings banks as

appropriate. We encourage the use of innovative tools, including mobile banking,

payment platforms and digitalized payments. We will expand peer learning and

experience-sharing among countries and regions, including through the Alliance for

Financial Inclusion and regional organizations. We commit to strengthening

capacity development for developing countries, including through the United

Nations development system, and encourage mutual cooperation and collaboration

between financial inclusion initiatives.

40. We recognize the positive contribution of migrants for inclusive growth and

sustainable development in countries of origin, and transit and destination countries.

Remittances from migrant workers, half of whom are wo men, are typically wages

transferred to families, primarily to meet part of the needs of the recipient

households. They cannot be equated to other international financial flows, such as

foreign direct investment, ODA or other public sources of financing fo r

development. We will work to ensure that adequate and affordable financial services

are available to migrants and their families in both home and host countries. We will

work towards reducing the average transaction cost of migrant remittances by 2030

to less than 3 per cent of the amount transferred. We are particularly concerned with

the cost of remittances in certain low volume and high cost corridors. We will work

to ensure that no remittance corridor requires charges higher than 5 per cent by

2030, mindful of the need to maintain adequate service coverage, especially for

those most in need. We will support national authorities to address the most

significant obstacles to the continued flow of remittances, such as the trend of banks

withdrawing services, to work towards access to remittance transfer services across

borders. We will increase coordination among national regulatory authorities to

remove obstacles to non-bank remittance service providers accessing payment

system infrastructure, and promote conditions for cheaper, faster and safer transfer

A/CONF.227/L.1

15-11996 14/39

of remittances in both source and recipient countries, including by promoting

competitive and transparent market conditions. We will exploit new technologies,

promote financial literacy and inclusion, and improve data collection.

41. We are committed to women’s and girls’ equal rights and opportunities in

political and economic decision-making and resource allocation and to removing

any barriers that prevent women from being full participants in the economy. We

resolve to undertake legislation and administrative reforms to give women equal

rights with men to economic resources, including access to ownership and control

over land and other forms of property, credit, inheritance, natural resources and

appropriate new technology. We further encourage the private sector to contribute to

advancing gender equality through striving to ensure women’s full and productive

employment and decent work, equal pay for equal work or work of equal value, and

equal opportunities, as well as protecting them against discrimination and abuse in

the workplace. We support the Women’s Empowerment Principles established by

UN-Women and the Global Compact and encourage increased investments in

female-owned companies or businesses.

42. We welcome the rapid growth of philanthropic giving and the significant

financial and non-financial contribution philanthropists have made towards

achieving our common goals. We recognize philanthropic donors’ flexibility and

capacity for innovation and taking risks, and their ability to leverage additional

funds through multi-stakeholder partnerships. We encourage others to join those

who already contribute. We welcome efforts to increase cooperation between

philanthropic actors, Governments and other development stakeholders. We call for

increased transparency and accountability in philanthropy. We encourage

philanthropic donors to give due consideration to local circumstances and align with

national policies and priorities. We also encourage philanthropic donors to consider

managing their endowments through impact investment, which considers both profit

and non-financial impacts in its investment criteria.

43. We recognize that micro, small and medium-sized enterprises, particularly

those that are women-owned, often have difficulty in obtaining financing. To

encourage increased lending to micro, small and medium -sized enterprises, financial

regulations can permit the use of collateral substitutes, create appropriate exceptions

to capital requirements, reduce entry and exit costs to encourage competition and

allow microfinance institutions to mobilize savings by receiving deposits. We will

work to strengthen the capacity of financial institutions to undertake cost -effective

credit evaluation, including through public training programmes, and through

establishing credit bureaux where appropriate. National development banks, credit

unions, and other domestic financial institutions can play a vital role in providing

access to financial services. We encourage both international and domestic

development banks to promote finance for micro, small and medium -sized

enterprises, including in industrial transformation, through the creation of credit

lines targeting those enterprises, as well as technical assistance. We welcome the

work of the International Finance Corporation and other initiatives in this area, and

encourage increased capacity-building and knowledge-sharing at the regional and

global levels. We also recognize the potential of new investment vehicles, such a s

development-oriented venture capital funds, potentially with public partners,

blended finance, risk mitigation instruments, and innovative debt funding structures

with appropriate risk management and regulatory frameworks. We will also enhance

capacity-building in these areas.

A/CONF.227/L.1

15/39 15-11996

44. To meet longer-term financing needs, we will work towards developing

domestic capital markets, particularly long-term bond and insurance markets where

appropriate, including crop insurance on non-distortive terms. We will also work to

strengthen supervision, clearing, settlement and risk management. We underline that

regional markets are an effective way to achieve scale and depth not attainable when

individual markets are small. We welcome the increase in lending in domestic

currencies by multilateral development banks, and encourage further growth in this

area. We encourage development banks to make use of all risk management tools,

including through diversification. We recognize that the nature of international

portfolio investment has evolved over the past 15 years, and that foreign investors

now play a significant role in some developing countries’ capital markets, and the

importance of managing volatility associated with these. We will enhance

international support in developing domestic capital markets in developing

countries, in particular in least developed countries, landlocked developing

countries and small island developing States. We will work to strengthen capacity -

building in this area, including through regional, interregional and global forums for

knowledge-sharing, technical assistance and data-sharing.

45. We recognize the important contribution that direct investment, including

foreign direct investment, can make to sustainable development, particularly when

projects are aligned with national and regional sustainable development strategies.

Government policies can strengthen positive spillovers from foreign direct

investment, such as know-how and technology, including through establishing

linkages with domestic suppliers, as well as encouraging the integration of local

enterprises, in particular micro, small and medium-sized enterprises in developing

countries, into regional and global value chains. We will encourage investment

promotion and other relevant agencies to focus on project preparation. We will

prioritize projects with the greatest potential for promoting full and productive

employment and decent work for all, sustainable patterns of production and

consumption, structural transformation and sustainable industrialization, productive

diversification and agriculture. Internationally, we will support these efforts through

financial and technical support and capacity-building, and closer collaboration

between home and host country agencies. We will consider the use of insurance,

investment guarantees, including through the Multilateral Investment Guarantee

Agency, and new financial instruments to incentivize foreign direct investment to

developing countries, particularly least developed countries, landlocked deve loping

countries, small island developing States and countries in conflict and post -conflict

situations.

46. We note with concern that many least developed countries continue to be

largely sidelined by foreign direct investment that could help to diversify their

economies, despite improvements in their investment climates. We resolve to adopt

and implement investment promotion regimes for least developed countries. We will

also offer financial and technical support for project preparation and contract

negotiation, advisory support in investment-related dispute resolution, access to

information on investment facilities and risk insurance and guarantees such as

through the Multilateral Investment Guarantee Agency, as requested by the least

developed countries. We also note that small island developing States face

challenges accessing international credit as a result of the structural characteristics

of their economies. Least developed countries will continue to improve their

enabling environments. We will also strengthen our efforts to address financing gaps

A/CONF.227/L.1

15-11996 16/39

and low levels of direct investment faced by landlocked developing countries, small

island developing States, many middle-income countries, and countries in conflict

and post-conflict situations. We encourage the use of innovative mechanisms and

partnerships to encourage greater international private financial participation in

these economies.

47. We acknowledge that impediments to private investment in infrastructure exist

on both the supply and demand side. Insufficient investment is due in part to

inadequate infrastructure plans and an insufficient number of well -prepared

investable projects, along with private sector incentive structures that are not

necessarily appropriate for investing in many long -term projects, and risk

perceptions of investors. To address these constraints, we will imbed resilient and

quality infrastructure investment plans in our national sustainable development

strategies, while also strengthening our domestic enabling environments.

Internationally, we will provide technical support for countries to translate plans

into concrete project pipelines, as well as for individual implementable projects,

including for feasibility studies, negotiation of complex contracts, and project

management. In this regard, we take note of the African Union’s Programme for

Infrastructure Development in Africa. We note with concern the decline in

infrastructure lending from commercial banks. We call on standard -setting bodies to

identify adjustments that could encourage long-term investments within a

framework of prudent risk-taking and robust risk control. We encourage long-term

institutional investors, such as pension funds and sovereign wealth funds, which

manage large pools of capital, to allocate a greater percentage to infrastructure,

particularly in developing countries. In this regard, we encourage investors to take

measures to incentivize greater long-term investment such as reviews of

compensation structures and performance criteria.

48. We recognize that both public and private investment have key roles to play in

infrastructure financing, including through development banks, development

finance institutions and tools and mechanisms such as public -private partnerships,

blended finance, which combines concessional public finance with non-concessional

private finance and expertise from the public and private sector, special -purpose

vehicles, non-recourse project financing, risk mitigation instruments and pooled

funding structures. Blended finance instruments including public-private

partnerships serve to lower investment-specific risks and incentivize additional

private sector finance across key development sectors led by regional, national and

subnational government policies and priorities for sustainable development. For

harnessing the potential of blended finance instruments for sustainable

development, careful consideration should be given to the appropriate structure and

use of blended finance instruments. Projects involving blended finance, includi ng

public-private partnerships, should share risks and reward fairly, include clear

accountability mechanisms and meet social and environmental standards. We will

therefore build capacity to enter into public-private partnerships, including with

regard to planning, contract negotiation, management, accounting and budgeting for

contingent liabilities. We also commit to holding inclusive, open and transparent

discussion when developing and adopting guidelines and documentation for the use

of public-private partnerships, and to build a knowledge base and share lessons

learned through regional and global forums.

49. We will promote both public and private investment in energy infrastructure

and clean energy technologies including carbon capture and storage technologies.

A/CONF.227/L.1

17/39 15-11996

We will substantially increase the share of renewable energy and double the global

rate of energy efficiency and conservation, with the aim of ensuring universal access

to affordable, reliable modern and sustainable energy services for all by 2030 . We

will enhance international cooperation to provide adequate support and facilitate

access to clean energy research and technology, expand infrastructure and upgrade

technology for supplying modern and sustainable energy services to all developing

countries, in particular least developed countries and small island developing States.

We welcome the Secretary-General’s Sustainable Energy for All initiative as a

useful framework, including its regional hubs, and the development of action

agendas and investment prospectuses at country level, where appropriate. We call

for action on its recommendations, with a combined potential to raise over

$100 billion in annual investments by 2020, through market -based initiatives,

partnerships and leveraging development banks. We recognize the special

vulnerabilities and needs of small island developing States, least developed

countries and landlocked developing countries, and welcome Power Africa, the

NEPAD Africa Power Vision and the Global Renewable Energy Islands Network of

the International Renewable Energy Agency (IRENA).

C. International development cooperation

50. International public finance plays an important role in complementing the

efforts of countries to mobilize public resources domestically, especially in the

poorest and most vulnerable countries with limited domestic resources. Our

ambitious agenda puts significant demands on public budgets and capacities, which

requires scaled-up and more effective international support, including both

concessional and non-concessional financing. We welcome the increase of all forms

of international public finance since Monterrey and are determined to step up our

respective efforts in support of the post-2015 development agenda. We recognize

that we share common goals and common ambitions to strengthen international

development cooperation and maximize its effectiveness, transparency, impact and

results. In this regard, we welcome the progress achieved in elaborating the

principles that apply to our respective efforts to increase the impact of our

cooperation. We will continue to strengthen our dialogue to enhance our common

understanding and improve knowledge-sharing.

51. We welcome the increase in volume of ODA since Monterrey. Nonetheless, we

express our concern that many countries still fall short of their ODA commitments

and we reiterate that the fulfilment of all ODA commitments remains crucial. ODA

providers reaffirm their respective commitments, including the commitment by

many developed countries to achieve the target of 0.7 per cent of ODA/GNI and

0.15 to 0.20 per cent of ODA/GNI to least developed countries. We are encouraged

by those few countries that have met or surpassed their commitment to 0.7 per cent

of ODA/GNI and the target of 0.15 to 0.20 per cent of ODA/GNI to least developed

countries. We urge all others to step up efforts to increase their ODA and to make

additional concrete efforts towards the ODA targets. We welcome the decision by

the European Union which reaffirms its collective commitment to achieve the

0.7 per cent of ODA/GNI target within the time frame of the post -2015 agenda, and

undertakes to meet collectively the target of 0.15 to 0.20 per cent of ODA/GNI to

least developed countries in the short term, and to reach 0.20 per cent of ODA/GNI

to least developed countries within the time frame of the post -2015 agenda. We

A/CONF.227/L.1

15-11996 18/39

encourage ODA providers to consider setting a target to provide at least 0.20 per

cent of ODA/GNI to least developed countries.

52. We recognize the importance of focusing the most concessional resources on

those with the greatest needs and least ability to mobilize other resources. In this

regard we note with great concern the decline in the share of ODA to least

developed countries and commit to reversing this decline. We are encouraged by

those who are allocating at least 50 per cent of their ODA to least developed

countries.

53. We stress the importance of mobilizing greater domestic support towards the

fulfilment of ODA commitments, including through raising public awareness, and

providing data on aid effectiveness and demonstrating tangible results. We

encourage partner countries to build on progress achieved in ensuring that ODA is

used effectively to help to achieve development goals and targets. We encourage the

publication of forward-looking plans which increase clarity, predictability and

transparency of future development cooperation, in accordance with national budget

allocation processes. We urge countries to track and report resource allocations for

gender equality and women’s empowerment.

54. An important use of international public finance, including ODA, is to catalyse

additional resource mobilization from other sources, public and private. It can

support improved tax collection and help to strengthen domestic enabl ing

environments and build essential public services. It can also be used to unlock

additional finance through blended or pooled financing and risk mitigation, notably

for infrastructure and other investments that support private sector development.

55. We will hold open, inclusive and transparent discussions on the modernization

of the ODA measurement and on the proposed measure of “total official support for

sustainable development” and we affirm that any such measure will not dilute

commitments already made.

56. South-South cooperation is an important element of international cooperation

for development as a complement, not a substitute, to North -South cooperation. We

recognize its increased importance, different history and particularities, and stress

that South-South cooperation should be seen as an expression of solidarity among

peoples and countries of the South, based on their shared experiences and

objectives. It should continue to be guided by the principles of respect for national

sovereignty, national ownership and independence, equality, non-conditionality,

non-interference in domestic affairs and mutual benefit.

57. We welcome the increased contributions of South-South cooperation to

poverty eradication and sustainable development. We encourage developing

countries to voluntarily step up their efforts to strengthen South -South cooperation,

and to further improve its development effectiveness in accordance with the

provisions of the Nairobi outcome document of the High -level United Nations

Conference on South-South Cooperation. We also commit to strengthening

triangular cooperation as a means of bringing relevant experience and expertise to

bear in development cooperation.

58. We welcome continued efforts to improve the quality, impact and effectiveness

of development cooperation and other international efforts in public finance,

including adherence to agreed development cooperation effectiveness principles. We

will align activities with national priorities, including by reducing fragmentation,

A/CONF.227/L.1

19/39 15-11996

accelerating the untying of aid, particularly for least developed countries and

countries most in need. We will promote country ownership and results orientation

and strengthen country systems, use programme -based approaches where

appropriate, strengthen partnerships for development, reduce transaction costs, and

increase transparency and mutual accountability. We will make development more

effective and predictable by providing developing countries with regular and timely

indicative information on planned support in the medium term. We will pursue these

efforts in the Development Cooperation Forum of the Economic and Social Council

and in this regard we also take account of efforts in other relevant forums, such as

the Global Partnership for Effective Development Cooperation, in a complementary

manner. We will also consider not requesting tax exemptions on goods and services

delivered as government-to-government aid, beginning with renouncing repayments

of value-added taxes and import levies.

59. We acknowledge that the United Nations Framework Convention on Climate

Change and the Conference of the Parties thereto is the primary international,

intergovernmental forum for negotiating the global response to climate change. We

welcome the Lima call for climate action and we are encouraged by the commitment

of the Conference of the Parties to reaching an ambitious agreement in Paris in 2015

that is applicable to all parties and that reflects the principle of common but

differentiated responsibilities and respective capabilities, in the light of different

national circumstances.

60. We reaffirm the importance of meeting in full existing commitments under

international conventions, including on climate change and related global

challenges. We recognize that funding from all sources, including public and

private, bilateral and multilateral, as well as alternative sources of finance, will need

to be stepped up for investments in many areas including for low -carbon and

climate resilient development. We recognize that, in the context of meaningful

mitigation actions and transparency on implementation, developed countries

committed to a goal of mobilizing jointly $100 billion a year by 2020 from a wide

variety of sources to address the needs of developing countries. We recognize the

need for transparent methodologies for reporting climate finance and welcome the

ongoing work in the context of the Convention.

61. We welcome the successful and timely initial resource mobilization process of

the Green Climate Fund, making it the largest dedicated climate fund and enabling

it to start its activities in supporting developing country parties to the Convention.

We welcome the decision of the Board of the Green Climate Fund to aim to start

taking decisions on the approval of projects and programmes no later than its third

meeting in 2015 as well as its decision regarding the formal replenishment process

for the Fund. We also welcome the Board’s decision to aim for a 50:50 balance

between mitigation and adaptation over time on a grant equivalent basis and to aim

for a floor of 50 per cent of the adaptation allocation for particularly vulnerable

countries, including least developed countries, small island developing States and

African countries. We note the importance of continued support to address

remaining gaps in the capacity to gain access to and manage climate finance.

62. We acknowledge the importance of taking into account the three dimensions of

sustainable development. We encourage consideration of climate and disaster

resilience in development financing to ensure the sustainability of development

results. We recognize that well-designed actions can produce multiple local and

A/CONF.227/L.1

15-11996 20/39

global benefits, including those related to climate change. We commit to investing

in efforts to strengthen the capacity of national and local actors to manage and

finance disaster risk, as part of national sustainable development strategies, and to

ensure that countries can draw on international assistance when needed.

63. We acknowledge the critical importance of biodiversity and the sustainable use

of its components in poverty eradication and sustainable development. We welcome

the implementation of the global Strategic Plan for Biodiversity for 2011 -2020 and

its Aichi Biodiversity Targets by the parties to the Convention on Biological

Diversity and we invite all parties to attend the thirteenth meeting of the Conference

of the Parties, to be held in Mexico in 2016. We encourage the mobilization of

financial resources from all sources and at all levels to conserve and sustainably use

biodiversity and ecosystems, including promoting sustainable land management,

combating desertification, drought, dust storms and floods, restoring degraded land

and soil, and promoting sustainable forest management. We welcome the

commitment of States parties to the United Nations Convention to Combat

Desertification to support and strengthen its implementation. We commit to

supporting the efforts of countries to advance conservation and restoration efforts,

such as the African Union Great Green Wall Initiative, and to providing support to

countries in need to enhance the implementation of their national biodiversity

strategies and action plans.

64. We recognize that oceans, seas and coastal areas form an integrated and

essential component of the Earth’s ecosystem and are critical to sustaining it and

that international law, as reflected in the United Nations Convention on the Law of

the Sea, provides the legal framework for the conservation and the sustainable use

of the oceans and their resources. We stress the importance of the conservation and

sustainable use of the oceans and seas and of their resources for sustainable

development, including through the contributions to poverty eradication, sustained

economic growth, food security, creation of sustainable livelihoods and decent

work, while at the same time protecting biodiversity and the marine environment

and addressing the impacts of climate change. We therefore commit to protecting,

and restoring, the health, productivity and resi lience of oceans and marine

ecosystems, and to maintaining their biodiversity, enabling their conservation and

sustainable use for present and future generations, and to effectively applying an

ecosystem approach and the precautionary approach in the management, in

accordance with international law, of activities impacting on the marine

environment, to deliver on all three dimensions of sustainable development.

65. We acknowledge that increases in global temperature, sea level rise, ocean

acidification, and other climate change impacts are seriously affecting coastal areas

and low-lying coastal countries including many least developed countries and small

island developing States, while extreme climate events endanger the lives and

livelihoods of millions. We commit to enhanced support to the most vulnerable in

addressing and adapting to these critical challenges.

66. Development finance can contribute to reducing social, environmental and

economic vulnerabilities and enable countries to prevent or combat situations of

chronic crisis related to conflicts or natural disasters. We recognize the need for the

coherence of developmental and humanitarian finance to ensure more timely,

comprehensive, appropriate and cost-effective approaches to the management and

mitigation of natural disasters and complex emergencies. We commit to promoting

A/CONF.227/L.1

21/39 15-11996

innovative financing mechanisms to allow countries to better prevent and manage

risks and develop mitigation plans. We will invest in efforts to strengthen the

capacity of national and local actors to manage and finance disaster risk reduction,

and to enable countries to draw efficiently and effectively on international

assistance when needed. We take note of the establishment of the Secretary -

General’s High-level Panel on Humanitarian Financing and the World Humanitarian

Summit to be held in Istanbul, Turkey, on 26 and 27 May 2016.

67. We recognize the major challenge to the achievement of durable peace and

sustainable development in countries in conflict and post -conflict situations. We

recognize the peacebuilding financing gap and the role played by the Peacebuilding

Fund. We will step up our efforts to assist countries in accessing financing for

peacebuilding and development in the post-conflict context. We recognize the need

for aid to be delivered efficiently through simplified mechanisms, increased

strengthening and use of country systems, as well as strengthening of the capacity of

local and national institutions as a priority in conflict -affected and post-conflict

States while stressing the importance of country ownership and leadership in both

peacebuilding and development.

68. We welcome ongoing work in relevant institutions to support efforts by least

developed countries, landlocked developing countries and small island deve loping

States to build their national capacity to respond to various kinds of shocks

including financial crisis, natural disasters, and public health emergencies, including

through funds and other tools.

69. We welcome the progress made since Monterrey to develop and mobilize

support for innovative sources and mechanisms of additional financing, in particular

by the Leading Group on Innovative Financing for Development. We invite more

countries to voluntarily join in implementing innovative mechanisms, inst ruments

and modalities which do not unduly burden developing countries. We encourage

consideration of how existing mechanisms, such as the International Finance

Facility for Immunisation, might be replicated to address broader development

needs. We also encourage exploring additional innovative mechanisms based on

models combining public and private resources such as green bonds, vaccine bonds,

triangular loans and pull mechanisms, and carbon pricing mechanisms.

70. We recognize the significant potential of multilateral development banks and

other international development banks in financing sustainable development and

providing know-how. Multilateral development banks can provide countercyclical

lending, including on concessional terms as appropriate, to complement national

resources for financial and economic shocks, natural disasters and pandemics. We

invite the multilateral development banks and other international development

banks to continue providing both concessional and non -concessional stable, long-

term development finance by leveraging contributions and capital, and by

mobilizing resources from capital markets. We stress that development banks should

make optimal use of their resources and balance sheets, consistent with maintaining

their financial integrity, and should update and develop their policies in support of

the post-2015 development agenda, including the sustainable development goals.

We encourage the multilateral development finance institutions to establish a

process to examine their own role, scale and functioning to enable them to adapt and

be fully responsive to the sustainable development agenda.

A/CONF.227/L.1

15-11996 22/39

71. We recognize that middle-income countries still face significant challenges to

achieve sustainable development. In order to ensure that achievements made to date

are sustained, efforts to address ongoing challenges should be strengthened through

the exchange of experiences, improved coordination, and better and focused support

of the United Nations development system, the international financial institutions,

regional organizations and other stakeholders. We therefore request those

stakeholders to ensure that the diverse and specific development needs of middle -

income countries are appropriately considered and addressed, in a tailored fashion,

in their relevant strategies and policies with a view to promoting a coherent and

comprehensive approach towards individual countries. We also acknowledge that

ODA and other concessional finance is still important for a number of these

countries and has a role to play for targeted results, taking into account the specific

needs of these countries.

72. We also recognize the need to devise methodologies to better account for the

complex and diverse realities of middle-income countries. We note with concern

that access to concessional finance is reduced as countries’ incomes grow, and that

countries may not be able to access sufficient affordable financing from other

sources to meet their needs. We encourage shareholders in multilateral development

banks to develop graduation policies that are sequenced, phased and gradual. We

also encourage multilateral development banks to explore ways to ensure that their

assistance best addresses the opportunities and challenges presented by the diverse

circumstances of middle-income countries. In this regard, we acknowledge the

World Bank’s small island State exception as a noteworthy response to the financing

challenges of small island developing States. We also underscore the importance of

risk mitigation mechanisms, including through the Multilateral Investment

Guarantee Agency.

73. We recognize that the graduation process of least developed countries should

be coupled with measures to ensure that the development process will not be

jeopardized and that progress towards the sustainable development goals will be

sustained. We further note that the level of concessionality of international public

finance should take into account the level of development of each recipient,

including income level, institutional capacity and vulnerability, as well as the nature

of the project to be funded, including the commercial viability.

74. We underline the important role and comparative advantage of an adequately

resourced, relevant, coherent, efficient and effective United Nations system in its

support to achieve the sustainable development goals and sustainable development,

and support the process on the longer-term positioning of the United Nations

development system in the context of the post-2015 development agenda. We will

work to strengthen national ownership and leadership over the operational activities

for development of the United Nations system in programme countries, United

Nations coherence, relevance, effectiveness and efficiency, to improve coordination

and results, including through achieving further progress on the “Delivering as one”

voluntary approach, among other operational modalities and approaches, and to

improve United Nations collaboration with relevant stakeholders and partners.

75. Development banks can play a particularly important role in alleviating

constraints on financing development, including quality infrastructure investment,

including for sub-sovereign loans. We welcome efforts by new development banks

to develop safeguard systems in open consultation with stakeholders on the basis of

A/CONF.227/L.1

23/39 15-11996

established international standards, and encourage all development banks to

establish or maintain social and environmental safeguards systems, including on

human rights, gender equality and women’s empowerment, that are transparent,

effective, efficient and time-sensitive. We encourage multilateral development banks

to further develop instruments to channel the resources of long -term investors

towards sustainable development, including through long -term infrastructure and

green bonds. We underline that regional investments in key priority sectors require

the expansion of new financing mechanisms, and call upon multilateral and regional

development finance institutions to support regional and subregional organizations

and programmes.

76. We recognize that genuine, effective and durable multi-stakeholder

partnerships can play an important role in advancing sustainable development. We

will encourage and promote such partnerships to support country -driven priorities

and strategies, building on lessons learned and available expertise. We further

recognize that partnerships are effective instruments for mobilizing human and

financial resources, expertise, technology and knowledge. We acknowledge the role

of the Global Environment Facility (GEF) in mainstreaming environmental concerns

into development efforts and providing grant and concessional resources to support

environmental projects in developing countries. We support building capacity in

developing countries, especially least developed countries and small island

developing States, to access available funds, and aim to enhance public and private

contributions to GEF.

77. Multi-stakeholder partnerships, such as the Global Alliance for Vaccines and

Immunization (Gavi) and the Global Fund to Fight AIDS, Tuberculosis and Malaria,

have also achieved results in the field of health. We encourage a better alignment

between such initiatives, and encourage them to improve their contribution to

strengthening health systems. We recognize the key role of the World Health

Organization as the directing and coordinating authority on international health

work. We will enhance international coordination and enabling environments at all

levels to strengthen national health systems and achieve universal health coverage.

We commit to strengthening the capacity of countries, in particular developing

countries, for early warning, risk reduction and management of national and global

health risks, as well as to substantially increase health financing and the

recruitment, development, training and retention of the health workforce in

developing countries, especially in least developed countries and small island

developing States. Parties to the World Health Organization Framework Convention

on Tobacco Control will also strengthen implementation of the Convention in all

countries, as appropriate, and will support mechanisms to raise awareness and

mobilize resources. We welcome innovative approaches to catalyse additional

domestic and international private and public resources for women and children,

who have been disproportionately affected by many health issues, including the

expected contribution of the Global Financing Facility in support of Every Woman,

Every Child.

78. We recognize the importance for achieving sustainable development of

delivering quality education to all girls and boys. This will require reaching children

living in extreme poverty, children with disabilities, migrant and refugee children,

and those in conflict and post-conflict situations, and providing safe, non-violent,

inclusive and effective learning environments for all. We will scale up investments

and international cooperation to allow all children to complete free, equitable,

A/CONF.227/L.1

15-11996 24/39

inclusive and quality early childhood, primary and secondary education, including

through scaling-up and strengthening initiatives, such as the Global Partnership for

Education. We commit to upgrading education facilities that are child, disability and

gender sensitive and increasing the percentage of qualified teachers in developing

countries, including through international cooperation, especially in least developed

countries and small island developing States.

D. International trade as an engine for development

79. International trade is an engine for inclusive economic growth and poverty

reduction, and contributes to the promotion of sustainable development. We will

continue to promote a universal, rules-based, open, transparent, predictable,

inclusive, non-discriminatory and equitable multilateral trading system under the

World Trade Organization (WTO), as well as meaningful trade liberalization. Such a

trading system encourages long-term investment in productive capacities. With

appropriate supporting policies, infrastructure and an educated work force, trade can

also help to promote productive employment and decent work, women’s

empowerment and food security, as well as a reduction in inequality, and contribute

to achieving the sustainable development goals.

80. We recognize that the multilateral trade negotiations in WTO require more

effort, although we regard the approval of the Bali Package in 2013 as an important

achievement. We reaffirm our commitment to strengthening the multilateral system.

We call on members of WTO to fully and expeditiously implement all the decisions

of the Bali Package, including the decisions taken in favour of least developed

countries, the decision on public stockholding for food security purposes, and the

Work Programme on Small Economies, and to expeditiously ratify the Agreement

on Trade Facilitation. WTO members declaring themselves in a position to do so

should notify commercially meaningful preferences for least developed country

services and service suppliers in accordance with the 2011 and 2013 Bali decision

on the operationalization of the least developed countries services waiver and in

response to the collective request of those countries.

81. We acknowledge that lack of access to trade finance can limit a country’s

trading potential, and result in missed opportunities to use trade as an engine for

development. We welcome the work carried out by the WTO Expert Group on Trade

Financing, and commit to exploring ways to use market-oriented incentives to

expand WTO-compatible trade finance and the availability of trade credit,

guarantees, insurance, factoring, letters of credit and innovative financial

instruments, including for micro, small and medium -sized enterprises in developing

countries. We call on the development banks to provide and increase market -

oriented trade finance and to examine ways to address market failures associated

with trade finance.

82. Whereas, since Monterrey, exports of many developing countries have

increased significantly, the participation of least developed countries, landlocked

developing countries, small island developing States and Africa in world trade in

goods and services remains low and world trade seems challenged to return to the

buoyant growth rates seen before the global financial crisis. We will endeavour to

significantly increase world trade in a manner consistent with the sustainable

development goals, including exports from developing countries, in particular from

least developed countries with a view towards doubling their share of global exports

A/CONF.227/L.1

25/39 15-11996

by 2020 as stated in the Istanbul Programme of Action. We will integrate sustainable

development into trade policy at all levels. Given the unique and particular

vulnerabilities in small island developing States, we strongly support their

engagement in trade and economic agreements. We will also support the fuller

integration of small, vulnerable economies in regional and world markets.

83. As a means of fostering growth in global trade, we call on WTO members to

redouble their efforts to promptly conclude the negotiations on the Doha

Development Agenda and reiterate that development concerns form an integral part

of the Doha Development Agenda, which places the needs and interests of

developing countries, including least developed countries, at the heart of the Doha

Work Programme. In that context enhanced market access, balanced rules, and well

targeted, sustainably financed technical assistance and capacity-building

programmes have important roles to play. We commit to combating protectionism in

all its forms. In accordance with one element of the mandate of the Doha

Development Agenda, we call on WTO members to correct and prevent trade

restrictions and distortions in world agricultural markets, including through the

parallel elimination of all forms of agricultural export subsidies and disciplines on

all export measures with equivalent effect. We call on WTO members to also

commit to strengthening disciplines on subsidies in the fisheries sector, including

through the prohibition of certain forms of subsidies that contribute to overcap acity

and overfishing in accordance with the mandate of the Doha Development Agenda

and the Hong Kong Ministerial Declaration. We urge WTO members to commit to

continuing efforts to accelerate the accession of all developing countries engaged in

negotiations for WTO membership and welcome the 2012 strengthening,

streamlining and operationalizing of the guidelines for the accession of least

developed countries to WTO.

84. Members of WTO will continue to implement the provisions of special and

differential treatment for developing countries, in particular least developed

countries, in accordance with WTO agreements. We welcome the establishment of

the monitoring mechanism to analyse and review all aspects of the implementation

of special and differential treatment provisions, as agreed in Bali, with a view to

strengthening them and making them more precise, effective and operational as well

as facilitating integration of developing and least-developed WTO members into the

multilateral trading system.

85. We call on developed country WTO members and developing country WTO

members declaring themselves in a position to do so to realize timely

implementation of duty-free and quota-free market access on a lasting basis for all

products originating from all least developed countries, consistent with WTO

decisions. We call on them to also take steps to facilitate market access for products

of least developed countries, including by developing simple and transparent rules

of origin applicable to imports from least developed countries, in accordance with

the guidelines adopted by WTO members at the Bali ministerial conference in 2013.

86. We reaffirm the right of WTO members to take advantage of the flexibilities in

the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights

(TRIPS) and reaffirm that the TRIPS Agreement does not and should not prevent

members from taking measures to protect public health. To this end, we would urge

all WTO members that have not yet accepted the amendment of the TRIPS

Agreement allowing improved access to affordable medicines for developing

A/CONF.227/L.1

15-11996 26/39

countries to do so by the deadline of the end of 2015. We welcome the June 2013

decision to extend the transition period for all least developed countries. We invite

the General Council to consider how WTO can contribute to sustainable

development.

87. We recognize the significant potential of regional economic integration and

interconnectivity to promote inclusive growth and sustainable development, and

commit to strengthening regional cooperation and regional trade agreements. We

will strengthen coherence and consistency among bilateral and regional trade and

investment agreements, and to ensure that they are compatible with WTO rules.

Regional integration can also be an important catalyst to reduce trade barriers,

implement policy reforms and enable companies, including micro, small and

medium-sized enterprises, to integrate into regional and global value chains. We

underline the contribution trade facilitation measures can make to this end. We urge

the international community, including international financial institutions and

multilateral and regional development banks, to increase its support to projects and

cooperation frameworks that foster regional and subregional integration, with

special attention to Africa, and that enhance the participation and integration of

small-scale industrial and other enterprises, particularly from developing countries,

into global value chains and markets. We encourage multilateral development banks,

including regional banks, in collaboration with other stakeholders, to address gaps

in trade, transport and transit-related regional infrastructure, including completing

missing links connecting landlocked developing countries, least developed countries

and small island developing States within regional networks.

88. Recognizing that international trade and investment offers opportunities but

also requires complementary actions at the national level, we will strengthen

domestic enabling environments and implement sound domestic policies and

reforms conducive to realizing the potential of trade for inclusive growth and

sustainable development. We further recognize the need for value addition by

developing countries and for further integration of micro, small and medium-sized

enterprises into value chains. We reiterate and will strengthen the important role of

the United Nations Conference on Trade and Development (UNCTAD) as the focal

point within the United Nations system for the integrated treatment of trade and

development and interrelated issues in the areas of finance, technology, investment

and sustainable development.

89. We endorse the efforts and initiatives of the United Nations Commission on

International Trade Law, as the core legal body within the United Nations system in

the field of international trade law, aimed at increasing coordination of and

cooperation on legal activities of international and regional organizations active in

the field of international trade law and at promoting the rule of law at the national

and international levels in this field.

90. Aid for Trade can play a major role. We will focus Aid for Trade on

developing countries, in particular least developed countries, including through the

Enhanced Integrated Framework for Trade-Related Technical Assistance to Least

Developed Countries. We will strive to allocate an increasing proportion of Aid for

Trade going to least developed countries, provided according to development

cooperation effectiveness principles. We also welcome additional cooperation

among developing countries to this end. Recognizing the critical role of women as

producers and traders, we will address their specific challenges in order to facilitate

A/CONF.227/L.1

27/39 15-11996

women’s equal and active participation in domestic, regional and internatio nal trade.

Technical assistance and improvement of trade- and transit-related logistics are

crucial in enabling landlocked developing countries to fully participate in and

benefit from multilateral trade negotiations, effectively implement policies and

regulations aimed at facilitating transport and trade, and diversify their export base.

91. The goal of protecting and encouraging investment should not affect our

ability to pursue public policy objectives. We will endeavour to craft trade and

investment agreements with appropriate safeguards so as not to constrain domestic

policies and regulation in the public interest. We will implement such agreements in

a transparent manner. We commit to supporting capacity -building including through

bilateral and multilateral channels, in particular to least developed countries, in

order to benefit from opportunities in international trade and investment

agreements. We request UNCTAD to continue its existing programme of meetings

and consultations with Member States on investment agreements.

92. We also recognize that illegal wildlife trade, illegal unreported and

unregulated fishing, illegal logging and illegal mining are a challenge for many

countries. Such activities can create substantial damage, including lost revenue and

corruption. We resolve to enhance global support for efforts to combat poaching and

trafficking of protected species, trafficking in hazardous waste, and trafficking in

minerals, including by strengthening both national regulation and international

cooperation, and increasing the capacity of local communities to pursue sustainable

livelihood opportunities. We will also enhance capacity for monitoring, control and

surveillance of fishing vessels so as to effectively prevent, deter and eliminate

illegal, unreported and unregulated fishing, including through institutional capacity -

building.

E. Debt and debt sustainability

93. Borrowing is an important tool for financing investment critical to achieving

sustainable development, including the sustainable development goals. Sovereign

borrowing also allows government finance to play a countercyclical role over

economic cycles. However, borrowing needs to be managed prudently. Since the

Monterrey Consensus, strengthened macroeconomic and public resource

management has led to a substantial decline in the vulnerability of many countries

to sovereign debt distress, as has the substantial debt reduction through the Heavily

Indebted Poor Countries (HIPC) initiative and Multilateral Debt Relief Initiative.

Yet many countries remain vulnerable to debt crises and some are in the midst of

crises, including a number of least developed countries, small island developing

States and some developed countries. We acknowledge that debt sustainability

challenges facing many least developed countries and small island developing

States require urgent solutions, and the importance of ensuring debt sustainability to

the smooth transition of countries that have graduated from least developed country

status.

94. We recognize the need to assist developing countries in attaining long-term

debt sustainability through coordinated policies aimed at fostering debt financing,

debt relief, debt restructuring and sound debt management, as appropriate. We will

continue to support the remaining HIPC-eligible countries that are working to

complete the HIPC process. On a case-by-case basis we could explore initiatives to

support non-HIPC countries with sound economic policies to enable them to address

A/CONF.227/L.1

15-11996 28/39

the issue of debt sustainability. We will support the maintenance of debt

sustainability in those countries that have received debt relief and achieved

sustainable debt levels.

95. The monitoring and prudent management of liabilities is an important element

of comprehensive national financing strategies and is critical to reducing

vulnerabilities. We welcome the efforts of IMF, the World Bank and the United

Nations system to further strengthen the analytical tools for assessing debt

sustainability and prudent public debt management. In this regard, the IMF-World

Bank debt sustainability analysis is a useful tool to inform the level of appropriate

borrowing. We invite IMF and the World Bank to continue strengthening their

analytical tools for sovereign debt management in an open and inclusive process

with the United Nations and other stakeholders. We encourage international

institutions to continue to provide assistance to debtor countries to enhance debt

management capacity, manage risks, and analyse trade-offs between different

sources of financing, as well as to help to cushion against external shocks and

ensure steady and stable access to public financing.

96. We welcome the continuing activities in setting methodological standards and

promoting public availability of data on public and publicly guaranteed sovereign

debt and on the total external debt obligations of economies, and more

comprehensive quarterly publication of debt data. We invite relevant institutions to

consider the creation of a central data registry including information on debt

restructurings. We encourage all Governments to improve transparency in debt

management.

97. We reiterate that debtors and creditors must work together to prevent and

resolve unsustainable debt situations. Maintaining sustainable debt levels is the

responsibility of the borrowing countries; however we acknowledge that lenders

also have a responsibility to lend in a way that does not undermine a country’s debt

sustainability. In this regard we take note of the UNCTAD principles on responsible

sovereign lending and borrowing. We recognize the applicable requirements of the

IMF debt limits policy and/or the World Bank’s non -concessional borrowing policy.

The OECD Development Assistance Committee has introduced new safeguards in

its statistical system in order to enhance the debt sustainability of recipient

countries. We recall the need to strengthen information -sharing and transparency to

make sure that debt sustainability assessments are based on comprehensive,

objective and reliable data. We will work towards a global consensus on guidelines

for debtor and creditor responsibilities in borrowing by and lending to sovereigns,

building on existing initiatives.

98. We affirm the importance of debt restructurings being timely, orderly,

effective, fair and negotiated in good faith. We believe that a workout from a

sovereign debt crisis should aim to restore public debt sustainability, while

preserving access to financing resources under favourable conditions. We further

acknowledge that successful debt restructurings enhance the ability of countries to

achieve sustainable development and the sustainable development goals. We

continue to be concerned with non-cooperative creditors who have demonstrated

their ability to disrupt timely completion of the debt restructurings.

99. We recognize that important improvements have been made since Monterrey

in enhancing the processes for cooperative restructuring of sovereign obligations,

including in the Paris Club of official creditors and in the market acceptance of new

A/CONF.227/L.1

29/39 15-11996

standard clauses of government bond contracts. However we acknowledge the

existence of stocks of sovereign bonds without those collective action clauses. We

recognize that there is scope to improve the arrangements for coordination between

public and private sectors and between debtors and creditors, to minimize both

creditor and debtor moral hazards and to facilitate fair burden -sharing and an

orderly, timely and efficient restructuring that respects the principles of shared

responsibility. We take note of the ongoing work being carried out by IMF and the

United Nations system in this area. We recognize the recent “Paris Forum” initiative

by the Paris Club that aims to foster dialogue among sovereign creditors and debtors

on debt issues. We encourage efforts towards a durable solution to the debt

problems of developing countries to promote their economic growth and sustainable

development.

100. We are concerned by the ability of non-cooperative minority bondholders to

disrupt the will of the large majority of bondholders who accept a restructuring of a

debt-crisis country’s obligations, given the potential broader implications in other

countries. We note legislative steps taken by certain countries to prevent these

activities and encourage all Governments to take action, as appropriate.

Furthermore, we take note of discussions in the United Nations on debt issues. We

welcome the reforms to pari passu and collective action clauses proposed by the

International Capital Market Association, and endorsed by IMF, to reduce the

vulnerability of sovereigns to holdout creditors. We encourage countries,

particularly those issuing bonds under foreign law, to take further actions to include

those clauses in all their bond issuance. We also welcome provision of financial

support for legal assistance to least developed countries and commit to boosting

international support for advisory legal services. We will explore enhanced

international monitoring of litigation by creditors after debt restructuring.

101. We note the increased issuance of sovereign bonds in domestic currency under

national laws, and the possibility of countries voluntarily strengthening domestic

legislation to reflect guiding principles for effective, timely, orderly and fair

resolution of sovereign debt crises.

102. We recognize that severe natural disasters and social or economic shocks can

undermine a country’s debt sustainability, and note that public creditors have taken

steps to ease debt repayment obligations through debt rescheduling and debt

cancellation following an earthquake, a tsunami and in the context of the Ebola

crisis in West Africa. We encourage consideration of further debt relief steps, where

appropriate, and/or other measures for countries affected in this regard, as feasible.

We also encourage the study of new financial instruments for developing countries,

particularly least developed countries, landlocked developing countries and small

island developing States experiencing debt distress, noting experiences of debt -to-

health and debt-to-nature swaps.

F. Addressing systemic issues

103. Monterrey emphasized the importance of continuing to improve global

economic governance and to strengthen the United Nations leadership role in

promoting development. Monterrey also emphasized the importance of the

coherence and consistency of the international financial and monetary and trading

systems in support of development. Since Monterrey we have become increasingly

aware of the need to take account of economic, social and environmental

A/CONF.227/L.1

15-11996 30/39

challenges, including the loss of biodiversity, natural disasters and climate change,

and to enhance policy coherence across all three dimensions of sustainable

development. We will take measures to improve and enhance global economic

governance and to arrive at a stronger, more coherent and more inclusive and

representative international architecture for sustainable development, while

respecting the mandates of respective organizations. We recognize the importance of

policy coherence for sustainable development and we call upon countries to assess

the impact of their policies on sustainable development.

104. The 2008 world financial and economic crisis underscored the need for sound

regulation of financial markets to strengthen financial and economic stability, as

well as the imperative of a global financial safety net. We welcome the important

steps taken since Monterrey, particularly following the crisis in 2008, to build

resilience, reduce vulnerability to international financial disruption, and reduce

spill-over effects of global financial crises, including to developing countries, in a

reform agenda whose completion remains a high priority. The IMF membership

bolstered the Fund’s lending capacity, and multilateral and national development

banks played important countercyclical roles during the crisis. The world’s principal

financial centres worked together to reduce systemic risks and financial volatility

through stronger national financial regulation, including Basel III and the broader

financial reform agenda.

105. Regulatory gaps and misaligned incentives continue to pose risks to financial

stability, including risks of spillover effects of financial crises to developing

countries, which suggests a need to pursue further reforms of the international

financial and monetary system. We will continue to strengthen international

coordination and policy coherence to enhance global financial and macroeconomic

stability. We will work to prevent and reduce the risk and impact of financial crises,

acknowledging that national policy decisions can have systemic and far-ranging

effects well beyond national borders, including on developing countries. We commit

to pursuing sound macroeconomic policies that contribute to global stability,

equitable and sustainable growth and sustainable development, while strengthening

our financial systems and economic institutions. When dealing with risks from large

and volatile capital flows, necessary macroeconomic policy adjustment could be

supported by macroprudential and, as appropriate, capital flow management

measures.

106. We recommit to broadening and strengthening the voice and participation of

developing countries in international economic decision-making and norm-setting

and global economic governance. We recognize the importance of overcoming

obstacles to planned resource increases and governance reforms at IMF. The

implementation of the 2010 reforms for IMF remains the highest priority and we

strongly urge the earliest ratification of those reforms. We reiterate our commitment

to further governance reform in both IMF and the World Bank to adapt to changes in

the global economy. We invite the Basel Committee on Banking Supervision and

other main international regulatory standard-setting bodies to continue efforts to

increase the voice of developing countries in norm-setting processes to ensure that

their concerns are taken into consideration. As the shareholders in the main

international financial institutions, we commit to open and transparent, gender -

balanced and merit-based selection of their heads, and to enhanced diversity of staff.

A/CONF.227/L.1

31/39 15-11996

107. At the same time, we recognize the importance of strengthening the permanent

international financial safety net. We remain committed to maintaining a strong and

quota-based IMF, with adequate resources to fulfil its systemic responsibilities. We

look forward to the quinquennial special drawing rights review by IMF this year.

We encourage dialogue among regional financial arrangements and strengthened

cooperation between IMF and regional financial arrangements, while safeguarding

the independence of the respective institutions. We call on the relevant international

financial institutions to further improve early warning of macroeconomic and

financial risks. We also urge IMF to continue its efforts to provide more

comprehensive and flexible financial responses to the needs of developing

countries. We request the international financial institutions to continue to support

developing countries in developing new instruments for financial risk management

and capacity-building. Consistent with its mandate, we call on IMF to provide

adequate levels of financial support to developing countries pursuing sustainable

development to assist them in managing any associated pressures on the national

balance of payments. We stress the importance of ensuring that international

agreements, rules and standards are consistent with each other and with progress

towards the sustainable development goals. We encourage development finance

institutions to align their business practices with the post-2015 development agenda.

108. We are concerned about excessive volatility of commodity prices, including

for food and agriculture and its consequences for global food security and improved

nutrition outcomes. We will adopt measures to ensure the proper functioning of food

commodity markets and their derivatives and call for relevant regulatory bodies to

adopt measures to facilitate timely, accurate and transparent access to market

information in an effort to ensure that commodity markets appropriately ref lect

underlying demand and supply changes and to help limit excess volatility of

commodity prices. In this regard, we also take note of the Agricultural Market

Information System hosted by FAO. We will also provide access for small -scale

artisanal fishers to marine resources and markets, consistent with sustainable

management practices as well as initiatives that add value to outputs from small -

scale fishers.

109. We take note of the work by the Financial Stability Board on financial market

reform, and commit to sustaining or strengthening our frameworks for

macroprudential regulation and countercyclical buffers. We will hasten completion

of the reform agenda on financial market regulation, including assessing and if

necessary reducing the systemic risks associated with shadow banking, markets for

derivatives, securities lending, and repurchase agreements. We also commit to

addressing the risk created by “too-big-to-fail” financial institutions, and addressing

cross-border elements in effective resolution of troubled systemically important

financial institutions.

110. We resolve to reduce mechanistic reliance on credit-rating agency

assessments, including in regulations. To improve the quality of ratings, we will

promote increased competition as well as measures to avoid conflict of interest in

the provision of credit ratings. We acknowledge the efforts of the Financial Stability

Board and others in this area. We support building greater transparency

requirements for evaluation standards of credit-rating agencies. We will continue

ongoing work on these issues, including in the United Nations.

A/CONF.227/L.1

15-11996 32/39

111. We recognize that international migration is a multidimensional reality of

major relevance for the development of origin, transit and destination countries that

must be addressed in a coherent, comprehensive and balanced manner. We will

cooperate internationally to ensure safe, orderly and regular migration, with full

respect for human rights. We endeavour to increase cooperation on access to and

portability of earned benefits, enhance the recognition of foreign qualifications,

education and skills, lower the costs of recruitment for migrants, and combat

unscrupulous recruiters, in accordance with national circumstances and legislation.

We further endeavour to implement effective social communication strategies on the

contribution of migrants to sustainable development in all its dimensions, in

particular in countries of destination, in order to combat xenophobia, facilitate

social integration, and protect migrants’ human rights through national frameworks.

We reaffirm the need to promote and protect effectively the human rights and

fundamental freedoms of all migrants, especially those of women and children,

regardless of their migration status.

112. We will strengthen regional, national and subnational institutions to prevent all

forms of violence, combat terrorism and crime, and end human trafficking and

exploitation of persons, in particular women and children, in accordance with

international human rights law. We will effectively strengthen national institutions

to combat money-laundering, corruption and the financing of terrorism, which have

serious implications for economic development and social cohesion. We will

enhance international cooperation for capacity-building in these areas at all levels,

in particular in developing countries. We commit to ensuring the effective

implementation of the United Nations Convention against Transnational Organized

Crime.

113. Building on the vision of the Monterrey Consensus, we resolve to strengthen

the coherence and consistency of multilateral financial, investment, trade, and

development policy and environment institutions and platforms, and increase

cooperation between major international institutions, while respecting mandates a nd

governance structures. We commit to taking better advantage of relevant United

Nations forums for promoting universal and holistic coherence and international

commitments to sustainable development.

G. Science, technology, innovation and capacity-building

114. The creation, development and diffusion of new innovations and technologies

and associated know-how, including the transfer of technology on mutually agreed

terms, are powerful drivers of economic growth and sustainable development.

However, we note with concern the persistent “digital divide” and the uneven

innovative capacity, connectivity and access to technology, including information

and communications technology, within and between countries. We will promote the

development and use of information and communications technology infrastructure,

as well as capacity-building, particularly in least developed countries, landlocked

developing countries and small island developing States, including rapid universal

and affordable access to the Internet. We will promote access to technology and

science for women, youth and children. We will further facilitate accessible

technology for persons with disabilities.

115. Capacity development will be integral to achieving the post -2015 development

agenda. We call for enhanced international support and establishment of

A/CONF.227/L.1

33/39 15-11996

multi-stakeholder partnerships for implementing effective and targeted capacity -

building in developing countries, including least developed countries, landlocked

developing countries, small island developing States, African countries, and

countries in conflict and post-conflict situations, to support national plans to

implement all the sustainable development goals. Capacity development must be

country-driven, address the specific needs and conditions of countries and reflect

national sustainable development strategies and priorities. We reiterate the

importance of strengthening institutional capacity and human resource development.

It is also critical to reinforce national efforts in capacity -building in developing

countries in such areas as public finance and administration, social and gender

responsive budgeting, mortgage finance, financial regulation and supervision,

agriculture productivity, fisheries, debt management, climate services, includi ng

planning and management for both adaptation and mitigation purposes, and water

and sanitation related activities and programmes.

116. We will craft policies that incentivize the creation of new technologies, that

incentivize research and that support innovation in developing countries. We

recognize the importance of an enabling environment at all levels, including

enabling regulatory and governance frameworks, in nurturing science, innovation,

the dissemination of technologies, particularly to micro, small and medium-sized

enterprises, as well as industrial diversification and value added to commodities. We

also recognize the importance of adequate, balanced and effective protection of

intellectual property rights in both developed and developing countrie s in line with

nationally defined priorities and in full respect of WTO rules. We recognize

voluntary patent pooling and other business models, which can enhance access to

technology and foster innovation. We will promote social innovation to support

social well-being and sustainable livelihoods.

117. We will encourage knowledge-sharing and the promotion of cooperation and

partnerships between stakeholders, including between Governments, firms,

academia and civil society, in sectors contributing to the achievement of the

sustainable development goals. We will promote entrepreneurship, including

through supporting business incubators. We affirm that regulatory environments that

are open and non-discriminatory can promote collaboration and further our efforts.

We will also foster linkages between multinational companies and the domestic

private sector to facilitate technology development and transfer, on mutually agreed

terms, of knowledge and skills, including skills trading programmes, in particular to

developing countries, with the support of appropriate policies. At the same time, we

recognize that traditional knowledge, innovations and practices of indigenous

peoples and local communities can support social well-being and sustainable

livelihoods and we reaffirm that indigenous peoples have the right to maintain,

control, protect and develop their cultural heritage, traditional knowledge and

traditional cultural expressions.

118. We also recognize the important role of public finance and policies in research

and technological development. We will consider using public funding to enable

critical projects to remain in the public domain, and strive for open access to

research for publicly funded projects, as appropriate. We will consider setting up

innovation funds where appropriate, on an open, competitive basis to support

innovative enterprises, particularly during research, development and demonstration

phases. We recognize the value of a “portfolio approach” in which public and

A/CONF.227/L.1

15-11996 34/39

private venture funds invest in diverse sets of projects to diversify risks and capture

the upside of successful enterprises.

119. We resolve to adopt science, technology and innovation strategies as integral

elements of our national sustainable development strategies to help to strengthen

knowledge-sharing and collaboration. We will scale up investment in science,

technology, engineering and mathematics education, and enhance technical,

vocational and tertiary education and training, ensuring equal access for women and

girls and encouraging their participation therein. We will increase the number of

scholarships available to students in developing countries to enrol in higher

education. We will enhance cooperation to strengthen tertiary education systems,

and aim to increase access to online education in areas related to sustainable

development.

120. We will encourage the development, dissemination and diffusion and transfer

of environmentally sound technologies to developing countries on favourable terms,

including on concessional and preferential terms, as mutually agreed. We will

endeavour to step up international cooperation and collaboration in science,

research, technology and innovation, including through public -private and

multi-stakeholder partnerships, and on the basis of common interest and mutual

benefit, focusing on the needs of developing countries and the achievement of the

sustainable development goals. We will continue to support developing countries to

strengthen their scientific, technological and innovative capaci ty to move towards

more sustainable patterns of consumption and production, including through

implementation of the 10-year framework of programmes on sustainable

consumption and production patterns. We will enhance international cooperation,

including ODA, in these areas, in particular to least developed countries, landlocked

developing countries, small island developing States, and countries in Africa. We

also encourage other forms of international cooperation, including South -South

cooperation, to complement these efforts.

121. We will support research and development of vaccines and medicines, as well

as preventive measures and treatments for the communicable and

non-communicable diseases, in particular those that disproportionately impact

developing countries. We will support relevant initiatives, such as Gavi, the Vaccine

Alliance, which incentivizes innovation while expanding access in developing

countries. To reach food security, we commit to further investment, including

through enhanced international cooperation, in earth observation, rural

infrastructure, agricultural research and extension services, and technology

development by enhancing agricultural productive capacity in developing countries,

in particular in least developed countries, for example by developing plant and

livestock gene banks. We will increase scientific knowledge, develop research

capacity and transfer marine technology, taking into account the Criteria and

Guidelines on the Transfer of Marine Technology adopted by the Intergover nmental

Oceanographic Commission, in order to improve ocean health and to enhance the

contribution of marine biodiversity to the development of developing countries, in

particular small island developing States and least developed countries.

122. We welcome science, technology and capacity-building initiatives, including

the Commission on Science and Technology for Development, the Technology

Mechanism under the United Nations Framework Convention on Climate Change,

the advisory services of the Climate Technology Centre and Network, the capacity-

A/CONF.227/L.1

35/39 15-11996

building of the World Intellectual Property Organization and the UNIDO National

Cleaner Production Centres networks. We invite specialized agencies, funds and

programmes of the United Nations system with technology-intensive mandates to

further promote the development and diffusion of relevant science, technologies and

capacity-building through their respective work programmes. We commit to

strengthening coherence and synergies among science and technology initiatives

within the United Nations system, with a view to eliminating duplicative efforts and

recognizing the many successful existing efforts in this space.

123. We decide to establish a technology facilitation mechanism. The mechanism

will be launched at the United Nations summit for the adoption of the post-2015

development agenda in order to support the sustainable development goals.

• We decide that the technology facilitation mechanism will be based on a

multi-stakeholder collaboration between Member States, civil society, the

private sector, the scientific community, United Nations entities and other

stakeholders and will be composed of a United Nations inter -agency task team

on science, technology and innovation for the sustainable development goals, a

collaborative multi-stakeholder forum on science, technology and innovation

for the sustainable development goals and an online platform.

• The United Nations inter-agency task team on science, technology and

innovation for the sustainable development goals will promote coordination,

coherence and cooperation within the United Nations system on science,

technology and innovation related matters, enhancing synergy and efficiency,

in particular to enhance capacity-building initiatives. The task team will draw

on existing resources and will work with 10 representatives from civil society,

the private sector and the scientific community to prepare the meetings of the

multi-stakeholder forum on science, technology and innovation for the

sustainable development goals, as well as in the development and

operationalization of the online platform, including preparing proposals for the

modalities for the forum and the online platform. The 10 representatives will

be appointed by the Secretary-General, for periods of two years. The task team

will be open to the participation of all United Nations agencies, funds and

programmes and the functional commissions of the Economic and Social

Council and it will initially be composed of the entities that currently integrate

the informal working group on technology facilitation, namely, the Department

of Economic and Social Affairs, the United Nations Environment Programme,

UNIDO, the United Nations Educational, Scientific and Cultural Organization,

UNCTAD, the International Telecommunication Union, WIPO and the World

Bank.

• The online platform will be used to establish a comprehensive mapping of, and

serve as a gateway for, information on existing science, technology and

innovation initiatives, mechanisms and programmes, within and beyond the

United Nations. The online platform will facilitate access to information,

knowledge and experience, as well as best practices and lessons learned, on

science, technology and innovation facilitation initiatives and policies. The

online platform will also facilitate the dissemination of relevant open access

scientific publications generated worldwide. The online platform will be

developed on the basis of an independent technical assessment which will take

into account best practices and lessons learned from other initiatives, within

A/CONF.227/L.1

15-11996 36/39

and beyond the United Nations, in order to ensure that it will complement,

facilitate access to and provide adequate information on existing science,

technology and innovation platforms, avoiding duplications and enhancing

synergies.

• The multi-stakeholder forum on science, technology and innovation for the

sustainable development goals will be convened once a year, for a period of

two days, to discuss science, technology and innovation cooperation around

thematic areas for the implementation of the sustainable development goals,

congregating all relevant stakeholders to actively contribute in their area of

expertise. The forum will provide a venue for facilitating interaction,

matchmaking and the establishment of networks between relevant stakeholders

and multi-stakeholder partnerships in order to identify and examine

technology needs and gaps, including on scientific cooperation, innovation and

capacity-building, and also in order to help facilitate development, transfer and

dissemination of relevant technologies for the sustainable development goals.

The meetings of the forum will be convened by the President of the Economic

and Social Council before the meetings of the high-level political forum on

sustainable development, under the auspices of the Economic and Social

Council or, alternatively, in conjunction with other forums or conferences, as

appropriate, taking into account the theme to be considered and on the basis of

a collaboration with the organizers of the other forums or conferences. The

meetings of the forum will be co-chaired by two Member States and will result

in a summary of discussions elaborated by the two co-Chairs, as an input to

the meetings of the high-level political forum, in the context of the follow-up

and review of the implementation of the post-2015 development agenda.

• The meetings of the high-level political forum will be informed by the

summary of the multi-stakeholder forum. The themes for the subsequent

multi-stakeholder forum on science, technology and innovation for the

sustainable development goals will be considered by the high -level political

forum on sustainable development, taking into account expert inputs from the

task team.

124. We look forward to the recommendations of the Secretary-General’s High-

level Panel on the Technology Bank for Least Developed Countries on the

feasibility and organizational and operational functions of a proposed technology

bank and science, technology and innovation capacity-building mechanism for least

developed countries. We will take into account the High -level Panel’s

recommendations on the scope, functions, institutional linkages and organizational

aspects of the proposed bank, with a view to operationalizing it by 2017, and will

seek to promote synergies with the technology facilitation mechanism.

III. Data, monitoring and follow-up

125. High-quality disaggregated data is an essential input for smart and transparent

decision-making, including in support of the post-2015 agenda and its means of

implementation, and can improve policy-making at all levels. A focus on

quantitative and qualitative data, including open data, and statistical systems and

administrations at the national and subnational level will be especially important in

order to strengthen domestic capacity, transparency and accountability in the global

A/CONF.227/L.1

37/39 15-11996

partnership. National statistical systems have a central role in generating,

disseminating and administering data. They should be supplemented with data and

analysis from civil society, academia and the private sector.

126. We will seek to increase and use high-quality, timely and reliable data

disaggregated by sex, age, geography, income, race, ethnicity, migratory status,

disability, and other characteristics relevant in national contexts. We will enhance

capacity-building support to developing countries, including for least developed

countries, landlocked developing countries and small island developing States, for

this purpose and provide international cooperation, including through technical and

financial support, to further strengthen the capacity of national statistical authorities

and bureaux. We call on relevant institutions to strengthen and standardize data on

domestic and international resource mobilization and spending, as well as data on

other means of implementation. In this regard, we will welcome proposals on

improved statistical indicators for all means of implementation. We also request the

Statistical Commission, working with the relevant international statistical service s

and forums, to facilitate enhanced tracking of data on all cross -border financing and

other economically relevant financial flows that brings together existing databases

and to regularly assess and report on the adequacy of international statistics relat ed

to implementing the sustainable development agenda. The availability of timely and

reliable data for development could be improved by supporting civil registration and

vital statistics systems, which generate information for national plans and

investment opportunities.

127. We recognize that greater transparency is essential and can be provided by

publishing timely, comprehensive and forward-looking information on development

activities in a common, open, electronic format, as appropriate. Access to reli able

data and statistics helps Governments to make informed decisions, and enables all

stakeholders to track progress and understand trade-offs, and creates mutual

accountability. We will learn from existing transparency initiatives and open data

standards, and take note of the International Aid Transparency Initiative. We further

recognize the importance of national ownership of the post -2015 development

agenda, and stress the importance of preparing country needs assessments for the

different priority areas to allow for greater transparency and efficiency by linking

needs and support, in particular in developing countries.

128. Data access alone, however, is not enough to fully realize the potential that

data can offer to both achieving, monitoring and reviewing sustainable development

goals. We should endeavour to ensure broad access to the tools necessary to turn

data into useful, actionable information. We will support efforts to make data

standards interoperable, allowing data from different sources to be more easily

compared and used. We call on relevant public and private actors to put forward

proposals to achieve a significant increase in global data literacy, accessibility and

use, in support of the post-2015 development agenda.

129. We further call on the United Nations system, in consultation with the

international financial institutions, to develop transparent measurements of progress

on sustainable development that go beyond per capita income, building on existing

initiatives as appropriate. These should recognize poverty in all of its forms and

dimensions, and the social, economic and environmental dimensions of domestic

output and structural gaps at all levels. We will seek to develop and implement tools

to mainstream sustainable development, as well as to monitor sustainable

A/CONF.227/L.1

15-11996 38/39

development impacts for different economic activities, including for sustainable

tourism.

130. Mechanisms for follow-up and review will be essential to the achievement of

the sustainable development goals and their means of implementation. We commit

to fully engaging, nationally, regionally and internationally, in ensuring proper and

effective follow-up of the financing for development outcomes and all the means of

implementation of the post-2015 development agenda. To achieve this, it will be

necessary to ensure the participation of relevant ministries, local authorities,

national parliaments, central banks and financial regulators, as well as the major

institutional stakeholders, other international development banks, and other relevant

institutions, civil society, academia and the private sector. We encourage the United

Nations regional commissions, in cooperation with regional banks and

organizations, to mobilize their expertise and existing mechanisms, which could

focus on thematic aspects of the present Action Agenda.

131. We appreciate the role played by the United Nations financing for

development follow-up process. We recognize the inter-linkages between the

financing for development process and the means of implementation of the

post-2015 development agenda, and emphasize the need of a dedicated follow -up

and review for the financing for development outcomes as well as all the means of

implementation of the post-2015 development agenda, which is integrated with the

post-2015 follow-up and review process to be decided at the United Nations summit

for the adoption of the post-2015 development agenda. The follow-up process

should assess progress, identify obstacles and challenges to the implementation of

the financing for development outcomes, and the delivery of the means of

implementation, promote the sharing of lessons learned from experiences at the

national and regional levels, address new and emerging topics of relevance to the

implementation of this agenda as the need arises, and provide policy

recommendations for action by the international community. We will also enhance

coordination, promote the efficiency of United Nations processes and avoid

duplication and overlapping of discussions.

132. We commit to staying engaged to this important agenda through a dedicated

and strengthened follow-up process that will use existing institutional arrangements

and will include an annual Economic and Social Council forum on financing for

development follow-up with universal, intergovernmental participation, to be

launched during the Council’s current cycle. The forum’s modalities of participation

will be those utilized at the international conferences on financing for development.

The forum will consist of up to five days, one of which will be the special high-

level meeting with the Bretton Woods institutions, WTO and UNCTAD, as well as

additional institutional and other stakeholders depending on the priorities and scope

of the meeting; up to four days will be dedicated to discussing the follow-up and

review of the financing for development outcomes and the means of implementation

of the post-2015 development agenda. Its intergovernmentally agreed conclusions

and recommendations will be fed into the overall follow -up and review of the

implementation of the post-2015 development agenda in the high-level political

forum on sustainable development. The deliberations of the Development

Cooperation Forum, according to its mandate, will also be taken into account. The

High-level Dialogue on Financing for Development of the General Assembly will be

held back-to-back with the high-level political forum under the auspices of the

General Assembly when the high-level political forum is convened every four years.

A/CONF.227/L.1

39/39 15-11996

133. To ensure a strengthened follow-up process at the global level, we encourage

the Secretary-General to convene an inter-agency task force, including the major

institutional stakeholders and the United Nations system, including funds and

programmes and specialized agencies whose mandates are related to the follow-up,

building on the experience of the Millennium Development Goals Gap Task Force.

The inter-agency task force will report annually on progress in implementing the

financing for development outcomes and the means of implementation of the

post-2015 development agenda and advise the intergovernmental follow -up thereto

on progress, implementation gaps and recommendations for corrective action, while

taking into consideration the national and regional dimensions.

134. We will consider the need to hold a follow-up conference by 2019.